First Year Away From Home Down With _bad_ Debt_ Andrew McNab .ppt

First Year Away From Home
• Down With (bad) Debt!
Andrew McNab
• Having a Great Day
Personal Finance Coach
Football Player
Into Building Youth, Families, Communities
Horror Stories
• “I Blew my First semester’s worth of OSAP
on Chili Peppers tickets!” - Eli Z.
• “I racked up $5000 of credit card debt in
my first semester” - Liz H.
• “My meal plan ran out by December, and I
didn’t know how to tell my parents I had no
food to eat” - Mike U.
Covering Your Essentials
•Whats your income plan?
•Do you need OSAP?
•How are you going to pay for your meals?
•How are you going to pay for your expenses?
•Are you going to get a job?
•
“Champions are perennial planners”
Covering Your Essentials
• Who has a written financial plan of how
they are going to live next year?
Writing down your goals is essential
because it gives you something to hang on
to.
Figure it out.
• Who has ten minutes to plan their finances?
The Big Student Trap
•How many people here have an older brother or sister
that has been to college/university?
•Are they in credit card debt?
The First Day
•Visualization: First day of frosh week. You are heading
to the auditorium for your orientation. Certain
organizations have set up booths in the hallway on your
way to the orientation, offering you various gifts to sign up
with them. Hats, backpacks, gift cards, t-shirts, they can
all be yours as long as you fill out their application and
get their product. What type of organizations are these?
Banks. Credit Card Companies.
•BIG QUESTION:
Are these credit card companies teaching you how to
properly build your credit when you sign up?
•So what happens to most students who get credit cards?
Credit And Debt
• What is credit?
Different Types of Credit Cards
Why is it important to have good credit?
•What is debt?
Different Types of Debt
•Why is it important to have good debt?
Building Credit
• What are some ways to build your credit rating?
- buy things with a credit card, pay it off
immediately!
• What are some ways to destroy your credit rating?
Be Honest to Yourself.
• if you are not confident you a) have a steady
income and b) are responsible enough to only
spend within your budget DO NOT GET A CREDIT
CARD.
SPENDING MONEY IS ADDICTIVE!
Money Runs the World
•2 Types of people:
1) People who do things
2) People who finance the people who do things
•Financial Elite have their hands in politics, education,
food, pharmaceuticals, military and media all over the
world. Know that the school is getting kickback money
from all the financial companies that sell credit cards to
you.
Would You Rather...
•Get a record deal, or own the label?
•Be a professional hockey player, or own the team?
Be a cog in the machine, or own the machine?
Cashflow Quadrants
• Do you want to work with or against the
rules of money?
• Robert Kiyosaki, Cashflow Quadrants
4 Ways To Generate
Income
Employee Business Owner
O.P.T
.
Self-Employee Investor O.P.M
90% 10%
Keep Your Money
•Financiers of the world want you to buy and go into debt.
Why?
•1) Because they become wealthy off of you paying
interest and buying their merchandise
•2) It trains your mindset to think that being in debt is
“normal”, which makes a person easier to control. Less
competition, more consumption.
Make a Plan!
• Assignment: Fill in a Cashflow Confidence
sheet for how you see yourself living next
year.
• 1. Brainstorm on the back of the page the
lifestyle you see yourself living.
Pictures and/or words
Assignment!
• 2. Put a $ amount to the lifestyle
Divide all figures by 2 for bi-weekly
expenses
• Pay yourself first! (10% of your income)
Apartment: $1100 (decent 1 bedroom apt)
• Food: $200
Cell Phone: $70
• Take Out: $100
Transportation: $120+
• Entertainment: ?
Assignment!
• What is your 2 week goal?
• What kind of financial position are you in?
Do you have any student debt? Are you
saving? Are you making money? Do you have
any investments?
Quick Budgeting Tips
1. Review your personal finances every day. Ask yourself, is this plan still right for me?
2. Pay yourself first. Put 10% of your paycheck into an account you don’t touch before you
pay anything else.
3. Separate your money into different categories using jars or envelopes for the different
expenses you plan for. It is much harder emotionally to spend money out of a jar marked
“rent” than it is to swipe a debit card.
4. Plan the upcoming week’s expenses at least 72 hours in advance
5. Leave your debit card at home and carry the money you need with you. If you need extra
cash, pay with your credit card and pay off the debt from your emergency fund the same day.
Further Reading (Buy These
Books!)
• Business Strategy
Art of War (with commentary)
- Sun-Tzu
Interpersonal Communication
How To Win Friends And Influence People
- Dale Carnegie
Winning Mindset
You Were Born Rich
- Bob Proctor
Financial Literacy
Conspiracy of the Rich
- Robert Kiyosaki http://www.conspiracyoftherich.com/ (online newsletter)
Lifestyle Design
The 4 Hour Workweek
-Timothy Ferriss http://www.fourhourworkweek.com/ (blog)
The pdfs of most of these books can also be googled.
THANK YOU!
• Have an Awesome Day
Andrew McNab
andrew@mcnabmoney.com